Alexander L. Martin, a broker with CSSC Brokerage Services was recently hit with a $20,000 fine by the Financial Industry Regulatory Authority (FINRA) and suspended from the industry for 20 business days. According to a recent Letter of Acceptance, Waiver and Consent (AWC) with FINRA, Alexander Martin allegedly failed to reasonably supervise registered representatives selling two private offerings. One of the representatives lacked a reasonable basis for recommending the offerings to his customers, and caused two specific customers to over-concentrate their accounts in illiquid private offerings that were inconsistent with their investment objectives and tolerance. A broker must only recommend those investments that are suitable for his clients, based on their age, net worth, investment objectives and investment risk tolerance, among other things. If he does not, and the client loses money, the brokerage firm may be liable for losses on a contingency fee basis. Alexander Martin had a reasonable duty to oversee the brokers at CSSC, in order to make sure that they did not violate securities laws or internal firm rules.
Alexander Llyod Martin, according to his online, FINRA BrokerCheck report, was previously registered with FSC Securities Corp in Atlanta, Georgia from February 1998 until August 2001, Mutual Service Corp in Troy, Michigan from August 2001 until March 2007, and CSSC Brokerage Services in Troy from December 2006 until June 2016. He has one financial matter against him. He is not currently registered as a broker within the industry. CSSC Brokerage Services may be held liable for investment losses on a contingency fee basis in the FINRA arbitration forum.
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